FG Openly Challenges War Risk Premium Imposition

…Says Imposition Based on Outdated Perception

Nigeria’s Minister of Marine and Blue Economy, Adegboyega Oyetolau has once again challenged the international maritime community, particularly  relevant organizations in the West for the imposition of a war risk premium on Nigeria, describing the action as economic injustice sustained by wrong narratives.

Oyetola who was speaking Wednesday, August 27, 2025 in Lagos on the topic “Addressing The Burden of War Risk Insurance on Nigeria’s Maritime Trade”, lashed out against the conspiracy of foreign interests which he says has robbed Nigeria of $1.5 billion in risk premium payments.

The minister who spoke at the One-Day Maritime Reporters Association of Nigeria (MARAN) 3rd Annual Maritime Lecture (MAMAL 2025) held at the FOUR POINT BY SHERATON HOTEL Victoria Island Lagos expressed Nigeria’s frustration regarding  the continued imposition of War Risk Premiums on Nigeria-bound vessels.

“The marine and blue economy ministry and all it’s agencies have significantly raised the bar in capacity building and our industry is doing well in all indices of measurement.

“We have successfully brought down piracy activities at zero level in the past three years, yet the Lyolds of London and others imposed a war risk insurance.

“This imposition is based on outdated perception and does not reflect the reality on the ground and have continued to pursue this wrong narrative”, he fumed.

Represented by Dr. Bolaji Akinola,  the minister explained that for years, internation underwriters like Lloyd’s of London, BINCO, JWCO and others have levied hefty surcharges on ships entering Nigerian waters.

He argued that these premiums—once justified by piracy and militancy in the Niger Delta have lingered long after the threats have dissipated.

“Nigeria is no longer the high-risk zone it was once perceived to be,” Oyetola declared, challenging the global insurance community to update its lens.

His frustration is echoed by the Nigerian Maritime Administration and Safety Agency (NIMASA), which reports that Nigeria has paid over $1.5 billion in War Risk Insurance in just three years.

The economic toll is staggering: a single voyage by a Very Large Crude Carrier can attract a surcharge of $445,000, while container ships face up to $525,000. These costs ripple through the economy, inflating shipping expenses and undermining Nigeria’s competitiveness.

But the data tells a different story. Nigeria has not recorded a single piracy incident in over three years. In 2021, the International Maritime Bureau removed Nigeria from its list of piracy-prone nations.

The International Bargaining Forum followed suit in 2023, delisting Nigeria from high-risk maritime zones. These milestones, achieved through coordinated efforts between NIMASA and the Nigerian Navy, have earned global recognition.

Still, the premiums persist making Oyetola’s call more than a policy critique but a demand for fairness.

“We cannot allow outdated fears to dictate our present reality,” he said, urging underwriters to reassess Nigeria’s maritime profile.

In the meantime NIMASA, is pushing for reform, transparency, and a recalibration of global maritime risk assessments.

As Nigeria charts a new course in its blue economy ambitions, the message is clear: the tides have turned, and it’s time the world caught up.

Nigeria demands a globally acceptable chart  for fixing insurance premiums.